Major cryptocurrencies also joined stocks in a broad decline on Wednesday as the market lost the momentum seen earlier in the week.
Cryptocurrency +/- Price Rise (Recorded at 9:15pm EDT) Bitcoin BTC/USD -1.54%$66,584.09 Ethereum ETH/USD
-4.50%$2,515.92 Dogecoin DOGE/USD -1.84%$0.1384
What happened: Bitcoin plummeted to $65,188 during trading hours, before recouping its losses overnight.
Ethereum fell below $2,500 for the first time in almost 10 days, hitting an intraday low of $2,463. Over the past week, Bitcoin’s dominance has steadily increased at the expense of Ethereum and other altcoins.
Total cryptocurrency transactions in the past 24 hours exceeded $277 million, the highest in a week. $203 million of upside bets were wiped out.
Bitcoin open interest fell by 0.87% over the past 24 hours, while Ethereum recorded a 1.15% decrease in funds locked in open contracts.
That said, the number of traders wanting Bitcoin significantly exceeded the number of traders betting on the cryptocurrency, according to the long/short ratio.
Additionally, market participants remain greedy as of this writing, according to the Crypto Fear and Greed Index.
Top Gainers (24 hours)
Cryptocurrency +/- Price Rise (Recorded at 9:15 PM EDT)Jupiter (JUP)+11.49%$1.10BOOK OF MEME (BOME)+10.75%$0.009891Popcat (POPCAT)+6.43%$1.50
Global cryptocurrencies fell by 2.19% in the past 24 hours to $2.28 trillion.
The stock market recorded losses for the third consecutive session. The Dow Jones Industrial Average fell 409.94 points, or 0.96%, to end at 42,514.95. The S&P 500 fell 0.92% to close at 5,797.42, and the tech-heavy Nasdaq Composite Index fell 1.60% to 18,276.65.
The benchmark 10-year U.S. Treasury yield continued to rise, at one point exceeding 4.25%, its highest level since last week in July. What’s interesting is that yields have risen significantly since the aggressive 0.5% interest rate cut enacted by the Federal Reserve last month.
Meanwhile, investors expected a 91% chance of a 25 basis point rate cut at the next FOMC meeting, according to the CME FedWatch tool.
See more: Best Cryptocurrency Scanner
Analyst Note: Popular crypto analyst and trader Recto Capital calls the ongoing retest a “success” if Bitcoin manages to stay above $66,200 to a new weekly close. He said it would be considered.
“There are encouraging signs so far,” the trader said.
Michael van de Poppe, a widely followed crypto market researcher, attributes the flattening of Bitcoin to the rise in US Treasury yields and the US dollar.
But he expected volatility to rise as macroeconomic data begins to trickle in again.
#bitcoin is currently working on that integration. $DXY And yields are trending upward.
Close to the sweet spot.
Macroeconomic data season begins tomorrow.
This is the era of volatility! pic.twitter.com/NdbIreLKR4
— Michael van de Poppe (@CryptoMichNL) October 23, 2024
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